Posted on: Monday, May 12, 2003

UH retirement program audit finds problems

By Beverly Creamer
Advertiser Education Writer

The Incentive Early Retirement program at the University of Hawai'i is not working the way it was intended, resulting in "unnecessary costs" and should be reviewed and perhaps eliminated, according to a new audit by state auditor Marion Higa.

The program, which began in 1983 to save on personnel costs, has instead cost the state $132,461 because it overlaps the State Early Retirement Incentive Program, resulting in dual retirement incentives for some people, Higa said.

"The goal of saving personnel costs through early retirement was subverted by replacing retirees with more highly paid replacements," Higa's report said.

"We found that for 34 retirees who were replaced, 22, or 65 percent of the replacements, were paid higher annual salaries. Of these replacements, three were paid at least 50 percent more, and another three were paid double their predecessors' salaries at retirement."

The university responded that it has already begun action to address some of Higa's concerns and is reviewing the merits of continuing the program.

In her report Higa also said the program duplicates other potentially less costly part-time work options already available to retirees.

And she said the program was poorly managed, with vague policies that led to uneven implementation and discrepancies in what different individuals are paid.